Molestation Victim Agrees to Settlement in ‘Fallen Angel’ Case

A teen-ager who was sexually molested when she was 8 years old has agreed to a $250,000 settlement of her civil lawsuit from two insurance companies and the wealthy Huntington Harbour couple who molested her.

John and Christi Steen, who were both declared mentally disordered sex offenders after they pleaded no contest to criminal charges in 1982, agreed to pay “almost half” of the total settlement, according to Joe A. Dickerson, the couple’s attorney.

In a 1982 hearing, the victim’s mother and stepfather testified that they had taken her to the Steen home. Both said they knew about the sexual activity that occurred there among adults, according to court records.

Provides for Annuity Income

The settlement agreement provides annuity income for the girl through 1990, with separate provisions calling for payments to cover her psychiatric care and any other expenses. The girl, now 14, remains in her mother’s care.

The lawsuit, scheduled to go to trial Monday in Orange County Superior Court, was settled by Judge Jack K. Mandel.

One of the companies contributing to the settlement was Hartford Insurance Co., which provided homeowners’ insurance for the Steens. The company, which has agreed to pay an undetermined amount, reserved its right to continue a lawsuit against the Steens for reimbursement, contending that its homeowner policy does not cover liability for child-molesting incidents.

Contributing to the settlement was Allstate Insurance Co., which carried homeowners’ insurance for the victim’s mother. As part of a cross-claim in the suit, the Steens alleged that the mother shared repsonsibility for her daughter’s injuries.

‘Different Story’ for Minors

“The mother brought the child into the house and was not attentive to what was happening to her,” said P.J. Pyka, another lawyer for the Steens. “At a minimum, these people were involved in a very adult activity. It was not unlawful for adults, but it’s a very different story when it comes to a minor.”

As part of the lawsuit, Pyka said, the Steens claimed that the victim’s mother failed to safeguard the girl while she was in the Steens’ home.

At the 1982 hearing, the victim’s mother testified that she had gone to the Steens’ home with her daughter and had sex with Christi Steen. The mother testified that she was not aware that her daughter had been engaged in sexual activity.

Meanwhile, the victim’s stepfather testified that he had been unaware of the girl’s activity until Steen showed him videotapes of her involvement. The stepfather said the tapes did not deter him from letting his stepdaughter visit the Steens on subsequent occasions, according to court records.

A spokesman for Allstate could not be reached for comment on the company’s contribution to the settlement, the amount of which could not be learned.

“Everybody wanted to put this case behind them,” Dickerson said. “You can assume the trauma she (the young victim) suffered from the whole situation. Can you imagine the trauma from having to go through this whole thing again at trial?”

Neither the victim’s mother nor father, who are divorced, could be reached.

Leonard Kohn, attorney for the father who had brought the lawsuit, said the victim has required significant medical treatment as a result of the sexual abuse.

“She will be 15 at the end of this month, and she is still seeing a counselor,” Kohn said. “She will need substantial future medical care.”

“This case should have been settled three years ago,” Kohn said. “We’ve had continuing court appearances in this case and she has had to attend some of them. To see Steen in the hallway--that shouldn’t have happened,” Kohn said.

Central Figure

John Steen was the central figure in a group of six adults who molested two young girls at his Huntington Harbour home in 1980, according to court records. Investigators found several rooms in the house were equipped with cameras and seized videotapes showing the Steens and the children involved in sex acts.

A judge who viewed videotapes of the activities made by Steen commented at the 1982 hearing that the “sheer monstrosity” of the crimes was “overwhelming.”

Four other women were convicted in the case, and each received sentences of 45 to 90 days in jail and probation.

The 1980 incident was known as the “Fallen Angel” case, taken from the title of a television program about child pornography. The second victim in the case saw the program and wrote to Christi Steen, saying she wanted to end such activities. The girl’s aunt intercepted the letter and turned it over to authorities.

Release Denounced

John Steen, now 60, was released on probation in 1985 after serving 2 1/2 years in a state mental hospital. His release was denounced by the young victim’s natural father, who urged the maximum 22-year prison term.

Christi Steen, age 35, has yet to be sentenced in the case. She spent three years in a state mental hospital, then was released on the condition that she continue to receive treatment on an outpatient basis.

“There’s no likelihood of any recurrence,” Dickerson said of Christi Steen. “She’s been in the hospital for several years, and has been in outpatient therapy for several years. She’s just trying to get on with her life.”